FSE to commence drilling in Benguet

Exploratory work has been gaining ground at the Far Southeast Gold Project (FSE) in Benguet, according to Lepanto Consolidated Mining Com.

In a disclosure to the Philippine Stock Exchange, Lepanto said Tuesday that its 60-percent-owned subsidiary, Far Southeast Gold Resources Inc., which owns the project in Benguet, is “set to commence drilling in the area as scheduled.”

Lepanto also assured the PSE that its patented claim on the mining asset would allow it to proceed with drilling works, even though the National Commission on Indigenous Peoples (NCIP) earlier issued an injunction on the mining activity.

The NCIP is the government body that issues certificates required under the permitting process whenever indigenous peoples are involved.

“Since the property in question is a patented claim of Lepanto Consolidated Mining Company, the matter has been settled,” Lepanto said.

Studies for the Far Southeast project is set to be completed in the first half of 2012.

Lepanto seeks to develop FSE through a partnership with Gold Fields Limited of South Africa, one of the biggest gold miners in the world, with whom Lepanto executed an option and shareholders’ agreement in September 2010. Gold Fields is presently undertaking due diligence and is considering acquiring a 60-percent stake in FSE under a $340-million deal.